ITEM 5.1
CITY CA, 202& REPULAR CITY COUNCIL MEETING
ITEM: PUBLIC HEARING (PUBLISHED NOTICE) TO
CONSIDER COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) HOME INVESTMENT
PARTNERSHIP ACT (HOME) PROGRAM ALLOCATIONS
FOR FISCAL YEAR 2026/2027
RECOMMENDATION: Council to Consider the Following:
1. Hold a Public Hearing; and
2. Adopt Resolution to Recommend the Allocation of
the CDBG and HOME Funds for FY 2026/2027 to
San Joaquin County and the US Department of
Housing and Urban Development (HUD) pursuant
to Budget Amendments
SUMMARY:
Each year the City of Lathrop (City) receives an allocation of Community Development Block Grant (CDBG) and HOME Investment Partnership Act (HOME) funds. Both programs are funded by the U.S. Department of Housing and Urban Development (HUD), and administered by San Joaquin County (COUNTY), under an Urban Cooperative Agreement between San Joaquin County and the cities of Escalon, Lathrop, Manteca, Ripon, and Tracy.
The County guidelines are in place to help meet the needs of the community and the requirements set forth by HUD. The important highlights of these guidelines are as follows:
• Multi-entitlement agencies must apply directly to San Joaquin County for both County and City funding.
• The minimum award for public service grant requests should be at least $5,000.00, unless prior approval received from San Joaquin County. • Cities will be recommending the local allocation of funds for final approval by the San Joaquin County Board of Supervisors and HUD.
For fiscal year 2026/2027, the City of Lathrop anticipates an allocation of $97,150 in CDBG funds and $25,739 in HOME funds. Final allocation numbers are determined upon Federal Budget approvals, which will be proportionally increased or decreased from the estimated funding levels to match the actual allocation amounts.
No more than fifteen percent (15%) of the allocated CDBG funds may be designated toward Public Service organizations with the remaining eighty-five percent (85%) designated toward Public Facility/Improvement projects. HOME funds may be allocated to eligible program(s) administered by the County.
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MARCH 9, 2026 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
Per HUD guidelines, a minimum of two (2) public meetings allowing public participation must be held prior to finalizing funding recommendations of local CDBG and HOME funding allocations. In compliance with these requirements, staff held a pre-application public workshop on January 6, 2026 and the public hearing held tonight to consider funding recommendations to San Joaquin County.
There will also be one more public hearing to be held at the San Joaquin County Board of Supervisor's meeting tentatively scheduled for May 12, 2026, in which the public may also provide comment on the funding recommendations.
Multi-entitlement agencies serve residents of multiple cities throughout the County; therefore, these agencies are required to submit one application to San Joaquin County for individual local agency funding requests.
There were four (4) multi-entitlement agency applications submitted for CDBG Public Service's funding and three (3) applications received for Public Services grants, zero (0) applications received for Public Facilities/Improvements grants, and zero (0) applications received for HOME funds. One (1) application submitted for the Public Services grant was deemed ineligible due the submittal being incomplete.
The three-step process for allocating funds to identified local activities is referenced below:
STEP 1. Allocate funding for the CDBG Public Service Organizations.
STEP 2. Allocate funding for the CDBG Public Facility/Improvements Projects.
STEP 3. Allocate HOME funds to an eligible program administered by the County.
Staff recommend that the City Council consider the information provided at the public hearing, during staff's presentation, and by the Lathrop Scoring Committee. City Council maintains sole discretion to accept staff's recommendations or propose recommended funding allocations toward eligible applicant projects or services they deem in the best interest to meet community and resident needs.
BACKGROUND:
The City of Lathrop, in accordance with the Urban Cooperative Agreement with San Joaquin County, will make recommendations to allocate the anticipated amount of CDBG funds to Public Service organization(s), Public Facility/Improvement projects), and HOME funds as follows:
CDBG
Public Service Awards (15%): $14,573
Public Facility/Improvement Projects (85%): $82,577
Total anticipated CDBG Allocation: $97,150
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MARCH 9, 2026 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
HOME Funds
Total anticipated HOME Funds $25,739
STEP 1: Allocate funds to Public Service Organizations
Multi-Entitlement Agencies via County Application:
Multi-entitlement agency applicants include San Joaquin County-Human Services Agency-Aging & Community Services, Emergency Food Bank of Stockton/San Joaquin, San Joaquin Fair Housing Foundation, Inc., and Give Every Child a Chance (GECAC). Each of these organizations provide services within multiple cities throughout San Joaquin County and have applied directly to the County through the one application process to request funding from the County and Cities for which they provide services.
The following summary describes the services provided to Lathrop residents by each of the multi-entitlement agency applicants and the amount requested by each organization:
Emergency Food Bank - Mobile Farmer's Market $1,300
The Emergency Food Bank of Stockton/San Joaquin is requesting funding for its "Mobile Farmers Market" program, which distributes to more than 80 sites throughout the county. Each site is visited monthly, with a goal of providing nutritional education, increasing access to fresh produce, promoting healthy lifestyles and decreasing the prevalence of disease/chronic health conditions and food insecurities to the most vulnerable populations. There are two Mobile Farmer's Market sites serving Lathrop for one day each month-Lathrop Elementary School, and Walnut Capk. The program expects to serve 842 residents of Lathrop.
San Joaquin Fair Housing Foundation, Inc. $1,305
HUD mandates that CDBG grantees develop viable communities by providing decent housing and suitable living environments for low-to-moderate income people. San Joaquin Fair Housing accomplishes this goal by educating tenants and owners on all the Federal and State Fair Housing laws to ensure understanding of their individual rights and responsibilities. As a HUD mandated program, each jurisdiction is responsible for providing their proportionate share of the anticipated expenditures by San Joaquin Fair Housing for the fiscal year. The program expects to benefit approximately 1,761 Lathrop residents.
SJC, HSA, Aging & Community Services - Meals on Wheels $1,785 The San Joaquin County Human Services Agency's Department of Aging & Community Services is requesting funding for its Meals on Wheels Program, which delivers five nutritious meals once a week to homebound seniors who lack CITY MANAGER'S REPORT Page | 4
MARCH 9, 2026 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
transportation and have little or no social support. The program's objective is to promote better health through improved nutrition. The program expects to benefit four (4) senior residents of Lathrop.
Give Every Child a Chance - Before/After School Programs $5,671 Give Every Child a Chance (GECAC) provides free and reduced cost programs to youth in san Joaquin County. Free mentor/tutoring to students in TK-12th grade is provided through programs called TEACH, ASP, and BHS. In addition, bi-monthly food, activity kit distributions, and a Summer Supplemental Program (Day Camp) are provided.
The programs expect to benefit approximately 575 youth in Lathrop.
City of Lathrop (PRD - Activity Fee Assistance) $5,000
The City of Lathrop's Parks & Recreation Department (PRD) offers an Activity Assistance Program designed to provide financial assistance to eligible low-income families and individuals who wish to participate in recreation services and activities.
PRD services and activities may include before and after school programs, day camps, sports programs, and classes. Eligible individuals may use up to $250 annually, but only 50% of the fees may be covered through the Activity Assistance Program. The program anticipated assisting 35 Lathrop residents.
City of Lathrop (PRD - Senior Special Event Funding) $24,300 The City of Lathrop has an extremely active Senior Center with multiple programs running daily, including nine-year special events. Over the last few years, attendance at these special events has tripled in participation. These special events offer seniors an opportunity to socialize through themed activities, entertainment and lunch. The City is committed to keeping the cost low at $7 per registration entry fee to ensure affordability for all. Low-income seniors can apply for the Recreation Fee Assistance, which brings the cost to $1.75. The average cost of food per participant ranges between $18 - $22, and the CDBG funding would help to offset the cost. Program anticipates serving 150+ seniors at each of these special events.
City of Lathrop (PRD - Joyce Gatto Art Show) $5,000
The Joyce Gatto Art Show is a long-standing City of Lathrop program supporting local artists. Funding would support the Art Show reception event where more than 200 local artists are recognized for their participation throughout the program's 32-year history. This program application was deemed incomplete by the review committee and was not evaluated for funding.
The Lathrop Ranking and Scoring Committee reviewed the applications and recommend funding each organization as follows:
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MARCH 9, 2026 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER CBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
PUBLIC SERVICE ORGANIZATIONS ALLOTMENT SUMMARY
Requested Recommended
Organization Amounts for Allotment for
FY 25/26 FY 25/26
Emergency Food Bank (Mobile Farmers Market) $1,300 $1,300 San Joaquin Fair Housing $1,305 $1,305
SJC Dept of Aging (Meals on Wheels) $1,785 $1,785
Give Every Child a Chance (GECAC) $5,671 $5,671
City of Lathrop (Senior Special Event Funding) $24,300 $4,512 TOTAL FUNDS $34,361 $14,573
STEP 2: Allocate Funds for Public Facility /Improvement Projects) The City of Lathrop anticipates $82,577 of CDBG funds to be available for eligible public facility/improvement projects.
There were no applications submitted requesting Public Facility/Improvement grant funding. However, as a previously approved and underfunded project, the City of Lathrop's Park Architectural Barrier Removal would qualify for additional funding.
Details of the project are below:
City of Lathrop - (PW - Park Architectural Barrier Removal) $335,000 CDBG Public Facilities/Improvements grant funding has previously been awarded to this project to assist with funding the removal of architectural barriers at East Lathrop Public Parks to meet ADA compliance and allow access for all visitors. Per the engineer's estimate created by City staff, the CDBG funds awarded in the previous 2 years are insufficient to address the listed architectural barriers across the six (6) parks. The project sites include Apolinar Sangalang Park, Woodfield Park, Valverde Wooded Park, Park, Thomson Park, Armstrong Park, and Libby Park. The additional funding will provide the ability to develop a scope of work that will address most of the necessary improvements and ensure accessibility for all community members.
STEP 3: Allocate Home Funds
The estimated HOME fund allocation for FY 2026-27 is $25,739. The City of Lathrop participates in two eligible HOME loan programs-the Homebuyer Down-Payment Assistance (GAP) and the Lathrop Housing Rehabilitation Program. Both programs provide low-interest loans for qualified low-income households. The City advertises these programs through the City website, Newsletters, and through flyers distributed at City Hall, Community Center, Senior Center, and the library.
The Neighborhood Preservation Division of San Joaquin County administers the HOME grant applications, contracts, and program disbursements. As of February 27, 2026, CITY MANAGER'S REPORT Page | 6
MARCH 9, 2026 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
San Joaquin County confirmed the current balance in the Lathrop Housing Rehabilitation Program as $179,483 and the Down Payment Assistance (GAP) Program balance as $30,755.
The Homebuyer Down Payment Assistance Program (GAP) has not been utilized for more than ten (10) years. Due to the rising cost of housing and interest rates, residents who qualify under HUDs low-income requirements often are unable to also qualify for a home purchase. The County also confirmed that they still have not received any qualified applications for this program.
Additionally, the County reported that the Lathrop Housing Rehabilitation program has been underutilized due to a lack of qualified applicants and there have been no loans completed in several years.
In the event market conditions change, staff is recommending that $10,000 of the HOME Funds be allocated to the GAP program, bringing the balance up to $50,000, with the remaining $15,739 being allocated to the Lathrop Housing Rehabilitation Program.
RECOMMENDATION:
Staff recommend that the City Council consider the information given at the public hearing and during the staff presentation to make a funding recommendation to allocate the 2026/2027 fiscal year CDBG and HOME program funds pursuant to budget amendments as follows:
Step 1: Allocate CDBG funds to Public Service Organizations ($14,573) as indicated on the Lathrop Scoring and Ranking Committee Recommendations (Attachment B).
Step 2: Allocate CDBG Public/Capital Facility funds ($82,577) to the City of Lathrop's East Lathrop Public Park Architectural Barrier Removal Project.
Step 3: Allocate HOME funds ($25,739) to the GAP program and Housing Rehabilitation Programs administered by the County as indicated on the Lathrop Scoring & Ranking Committee Recommendations (Attachment B).
FISCAL IMPACT:
Staff time to review the applications, prepare this report, presentation, audit, and administer the program.
Staff requests the following budget amendments to accommodate the CDBG FY 2026/2027 allocations for Public Service and Public Facility/Improvement Grants:
CITY MANAGER'S REPORT Page | 7
MARLIC HEARING PUBLISHED NOT CODER DEG AND HOME
FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
Increase Revenues
2650-1130-333-01-00 Intergov. Federal - CDBG CC $87,089 Increase Transter Out
2650-9900-990-90-10 CDBG Fund Transfer Out - Public Agency $87,089 Increase Transfers In
3010-9900-393-00-00 Increase Transfer CIP GG 25-02 $82,577 1010-9900-393-00-00 Increase Transfer - Senior Events Program $ 4,512 Increase Expenses.
3010-8000-420-12-00 rease Expense Senior vents Program $ 4,512 1010-3021-430-20-00
ATTACHMENTS:
A) Resolution Recommending the Allocation of the Community Development Block Grant and Home Investment Program Funds for FY 2026/2027.
B) FY 2026/2027 - CDBG/HOME Grant Applications, Scoring and Ranking Committee Recommendations
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MARCH 9, 2026 CITY COUNCIL REGULAR MEETING
PUBLIC HEARING (PUBLISHED NOTICE) TO CONSIDER CDBG AND HOME FUNDING ALLOCATIONS FOR FISCAL YEAR 2026/2027
APPROVALS:
2/27/2024
Barbara Harb Date
Economic Development Administrator
landras 3/2/2026
Cari Jami Date
Finance Director
134 3/2/2026
Thomas Hedegard Date
Deputy City Manager
51 3-2-2026
Salvador Navarrete Date
City Attorney
3.2.26 Stephen J. Salvatore Date
City Manager
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
RECOMMENDING THE ALLOCATION OF THE COMMUNITY DEVELOPMENT
BLOCK GRANT AND HOME INVESTMENT PROGRAM FUNDS FOR FISCAL YEAR 2026/2027 PURSUANT TO BUDGET AMENDMENTS
WHEREAS, the City anticipates it will receive an estimated allocation of $97,150 for Community Development Block Grant (CDBG) and $25,739 for the HOME Investment Program (HOME) for Fiscal Year (FY) 2026-2027; and WHEREAS, the City of Lathrop has properly published a 30-day public notice of availability of funds for the programs in accordance with HUD regulations; and WHEREAS, the City Council has determined in accordance with the California Environmental Quality Act, Article 18, Section 15273, that this item is statutorily exempt because CEQA does not apply to the establishment or modification of HUD funding programs to public agencies which are to meet community needs; and WHEREAS, the City Council conducted a duly noticed public hearing on March 9, 2026, to consider applications for CDBG and HOME Funds for FY 2026-2027, has considered the information given at the public hearing and during the staff presentation, and determines that the recommended allocations represent the community needs in Lathrop; and
WHEREAS, the recipients of CDBG funding are required to enter into an agreement with the City to ensure that funds are spent in accordance with HUD regulations.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lathrop, does hereby recommend the following public service agencies and allocated amounts for funding in the Fiscal Year 2026/2027 for the CDBG program:
Public Service Organizations Allocations
Give Every Child a Chance (GECAC) $ 5,671
San Joaquin Fair Housing $ 1,305
Stockton/San Joaquin Emergency Food Bank (Mobile Farmers Market) $ 1,300 SJC Dept. of Aging (Meals on Wheel) $ 1,785
City of Lathrop (PR&D - Senior Special Event Funding) $ 4,512 Total Allocation (15% of $98,536) $14,573
BE IT FURTHER RESOLVED that the City does hereby recommend allocating $82,577 of the Public Facility/Improvement funds to the City of Lathrop's East Lathrop Public Parks Removal of Architectural Barriers project CIP GG 25-02; and Resolution No. 26-
BE IT FURTHER RESOLVED that the City does hereby recommend allocating $15,739 of the HOME Program funds to the Lathrop Property Rehabilitation Loan Program and $10,000 to the GAP Loan Program for down payment assistance.
BE IT FURTHER RESOLVED that the City Council authorizes CDBG and HOME fund allocations pursuant to the following budget amendments for FY 2026/2027.
Increase Revenues
2650-1130-333-01-00 Intergov. Federal - CDBG CC $87,089 Increase Transfer Out
2650-9900-990-90-10 CDBG Fund Transfer Out - Public Agency $87,089 Increase Transfers In
3010-9900-393-00-00 Increase Transfer CIP GG 25-02 $82,577 1010-9900-393-00-00 Increase Transfer - Senior Events Program $ 4,512 Increase Expenses
3010-8000-420-12-00 Increase Expense CIP GG 25-02 $82,577 1010-3021-430-20-00 Increase Expense - Senior Events Program $ 4,512 PASSED AND ADOPTED this 10th day of March 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, MAYOR
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney Resolution No. 26-
ATTACHMENT B
CDBG/HOME GRANT APPLICATIONS - SCORING AND RANKING COMMITTEE RECOMMENDATIONS FY 2026-2027
Estimated Funding Allocations
CDBG FUNDING $97,150
Public Services (15% Max) $14,573
Public/Capital Facilities $82,577
HOME FUNDING $25,739
A) Public Facility Applications Available Funding: 82,577 Recommended 26/27
Request FY26/27 Award 24/24 Award 23/24 Award 25/26 Prior Award(s) Balance
NO APPLICATIONS RECEIVED
1) Park Architectural Barrier Removal 83,755.00 82,578.00 166,333.00 82,577.00 Total Requested 83,755.00 $ 82,578.00 166,333.00
Total Recommended $ 82,577
B) Public Service Applications Available Funding: 14,573 Recommended 26/27
Request FY26/27 Award 23/24 Award 24/25 Award 25/26 Prior Award(s) Balance 1) Lathrop Activity Fee Assistance Grant 5,000.00 4,201.00 2,600.25 2) Parks - Senior Special Event 24,300.00 5,214.00 2,706.81 4,512.00 3) Mobile Farmers Market 1,300.00 1,919.00 1,305.00 1,287.00 1,287.00 1,300.00 4) Fair Housing es us es 1,305.00 1,250.00 1,305.00 1,287.00 1,168.89 1,305.00 5) Meals on Wheels 1,785.00 1,000.00 1,305.00 1,627.00 1,785.00 5) GECAC 5,671.00 5,800.00 5,652.00 5,521.00 5,521.00 5,671.00 7) HSA-Rental Assistance 4,850.00 4,850.00
Total Requested es 39,361.00 14,170.00 14,781.00 14,572.00 18,133.95 Total Recommended 14,573
C) HOME Investment Funds Available Funding: $25,739
Recommended 26/27
Request FY26/27 Award 23/24 Award 24/25 Award 25/26 Prior Award(s) Balance. 1) Lathrop Housing Rehab Program 23,893.00 18,958.00 13,624.00 179,483.00 15,739.00 2) Downpayment Assistance Program (GAP) 10,000.00 7,885.00 12,115.00 30.755.00 10.000.00 Total Requested 33,893.00 26,843.00 25,739.00 210,238.00 Total Recommended 25,739.00
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